The bulk of the outstanding loans belonged to institutions, up to $1.5 billion, while retail loans accounted for the remaining $300 million.
The company said it has guidelines in place to help the current operations of core businesses including institutional and retail lending and trading activities and liquidity of assets.
BlockFi will hold at least 10% of the total amount in inventory according to the customer’s demand and refund the customer under this guidance and recover and return to the customer hold at least 50% of the amount owed within 7 days.
Whether it is inventory or loans, BlockFi will recall at least 90% of the total amount owed to customers within a year.
The company has exposure to Singapore-based hedge fund Three Arrows Capital (3AC), which has filed for bankruptcy protection. BlockFi’s GBTC investment product lost about $80 million due to bad debts from Three Arrows.
Troubled digital asset firm BlockFi has secured a $250 million line of credit from the FTX derivatives exchange as it hopes to survive the current crypto downturn.
While BlockFi’s woes aren’t as evident as Celsius Network or Babel Finance, the company also announced 20% layoffs in June, or about 170 people.
BlockFi CEO Zac Prince said the crypto-lending company will cut “about 20% of its workforce, with layoffs affecting every team in the company. This decision was driven by market conditions that negatively impacted our growth rate and critical scrutiny of our strategic priorities.”
Currently, BlockFi has stopped accepting shares in the Grayscale Bitcoin Trust (GBTC) as collateral for loans.
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